Contract Assignment Vs. Double Closing???
Hello folks,
I was wondering why someone would do a contract assignment vs. a double closing, as it seems like they accomplish the same end result.
I know some folks believe contract assignment puts you dangerously close to brokering without a license (BWAL).
Are assignments legal in every state? What about double closings? Do attorneys detest doing double closings?
Thanks, Dave
In both cases you are dealing with contracts, an agreement, so if they are legal and your laws apply saying yea haw yeah, then why not assign... do what works fo you...
Good contracts, with in the laws, do it.
and once again seak the advice of you attorney and tax advisor....
I do both. I just did an assignment though because there wasn't alot of money involved and didn't want to pay the fees on a double close. I do think double closes are better though because the seller doesn't see how much you are making.
Assignment helps avoid seasoning issues. When the buyer is getting financing, his lender may require that the previous owner lived in the house for xx amount of time. Well if you've bought the house for the purpose of selling it, you probably haven't lived there long enough (if at all).
But w/ assigment both the seller and buyer know how much profit you--the "middle man"--are making.